Here we are, February of 2021 and it has been an interesting start to the year. For those of you that have read previous articles, you know I have been one of those outliers that has been predicting inflation and the tremendous risks posed by the bond market for a good 18-months. So, in keeping with that theme, I shall try and grapple with the interesting trading action so far. It started with a sell-off in treasuries, followed promptly by a sell-off in equities and precious metals with inflation jitters coming back into the equation.
This week we continue with the thematic of mobility and look at another adjacent category, semiconductors. In particular where we see the market going and why it remains an important aspect to look at especially when one thinks off the EV market. For the more technically apt, please forgive if the following seems a tad layman-like, given that this author's particular forte is economics.
Sometimes you get a piece of good advice early in your career, from someone older, that you respect. You should remember that advice and follow it. One of these is often “never say we told you so; it just irritates”. We’re going to break that rule; in a polite way.
This week we continue with the thematic of the future of mobility. We have previously written about the incredible government appetite for renewables from a policy perspective, EV being a key component of this. This also happens to be the reason why we here at TAMIM believe that this is a space that investors simply can’t afford to ignore.
If something is too hard or whacky then there is a tendency to ignore it and hope it goes away. The recent bizarre price moves in GameStop and AMC and other ‘marginally solvent’ companies is just such a case in point. However, ‘hope’ is not a strategy and it can pay to rummage in the information cellar where you might find something useful / or learn a lesson? So we’ll have a stab at making sense of what looks like nonsense. We might come to a useful conclusion?
Markets & Commentary
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